South Africa’s reindustrialisation requires collaboration between multiple sectors

To achieve reindustrialisation in South Africa, collaboration across industries is crucial, Kearney metals and mining global lead Igor Hulak said during the second day of the Joburg Indaba, in Johannesburg, on October 3.

He emphasised that reindustrialisation "cannot be done only by one industry - by mining". He stressed the importance of connecting industrial champions across sectors to collaborate, share resources and exchange information.

Business Unity South Africa president Mxolisi Mgojo echoed this sentiment, stating that the approach should be broader than just focusing on individual industries. He argued that the focus should be on developing an industrial policy for South Africa that ensured global competitiveness.

“How do you want to be competitive globally, and how will that translate to the type of industries we want to create?” he asked.

He highlighted the importance of fostering local capacity and capabilities to build resilience and sustainability.

Mgojo further remarked that the country must identify key procurement needs for State-owned entities to sustain them over the next 30 to 50 years.

He proposed that South Africa start packaging industrial policies that engaged the private sector in building the necessary industries.

He also called for a unified national strategy, stating, "We need to create a framework and a strategy for the country with which we are all going to rally around."

In addition to collaboration, reindustrialisation also depended on supporting small businesses, according to Small Business Institute chairperson Sipho Nkosi, who noted that the mining sector could contribute through their social and labour plans (SLPs).

“Small business plays a key role, but as a country, I don't think we have really put our thoughts and our minds into that, and that is why we seem to be failing," he said.

ENS natural resources and environment practice head Ntsiki Adonisi spoke on the primary objective of SLPs, which was to transform the mining industry while promoting employment and advancing social and economic welfare.

“This transformation will largely be driven through the local economic development programme, with mining houses expected to create and implement comprehensive procurement strategies,” she explained.

These strategies focus on capital goods, services and consumables, ensuring alignment with local economic capabilities.

Adonisi also acknowledged the procurement limitations, particularly in the availability of capital goods, such as machinery, in certain regions. She emphasised that, although a legal framework existed, success depended on collaboration between the mining industry and its stakeholders.

According to Adonisi, there was a need to shift from siloed operations by mining companies to a more regional approach to SLPs, which would foster collective impact through holistic regional procurement strategies.

She concluded by stating that “success ultimately rests with the people, the mining communities and the regulator." She said the regulator had the responsibility to define success metrics and ensure that procurement strategies are sustainable and effective.

While some collaboration is already taking place, she noted, further improvement lies in convening mining companies to collectively refine future procurement strategies.